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FedEX Declared Value = Insurance or No?

post #1 of 12
1/7/10 at 2:42pm
Thread Starter 
I was calculating transit time and cost for a package going out soon via both UPS.com and FedEX.com and was inputting the value in FedEX's Declared Value box and realized that I had always taken that for granted to mean insurance amount. UPS's website indicates that was it is indeed, but FedEX's is cryptic. I did some googling and am bit confused. Apparently, if you use FedEX ground no matter what the package can only be insured up to $100 no matter the declared value. With FedEX (express, not ground) apparently a package can be insured up to $500. There were also some postings about having to go through a 3rd party. Can anyone sort out what the real deal is on FedEX insurance policies and what Declared Value really means? Any real world experiences with claims? It seems UPS and USPS are safer in this regard.
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post #2 of 12
1/7/10 at 2:45pm
i had a confusion about the declared amount as well. i had used that on occasion to ship ground several hefty items and they always charged me extra (like 3-5 bux more) each time and i just took it as that was the insurance amount.

but then when i looked it up on the internet as well, i was confused because lot of people said it was not insurance at all.

so im in the same boat and need to find out. im just a little ticked that i paid all that extra 30 dollars or so for something for nothing.
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post #3 of 12
1/7/10 at 2:49pm
Per Fedex:

"The declared value of any package represents our maximum liability in connection with a shipment of that package, including, but not limited to, any loss, damage, delay, misdelivery, nondelivery, misinformation, any failure to provide information, or misdelivery of information relating to the shipment. It is the shipper's responsibility to prove actual damages. Exposure to and risk of any loss in excess of the declared value is assumed by the shipper. You may transfer this risk to an insurance carrier of your choice through the purchase of an insurance policy. Contact an insurance agent or broker if you desire insurance coverage. WE DO NOT PROVIDE INSURANCE COVERAGE OF ANY KIND. "
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post #4 of 12
1/7/10 at 3:01pm
Thread Starter 
Thans for the paragraph. However, the part not in bold is just as telling. It says, the declared value is their (FedEX's) maximum liability. Any loss in excess is the shipper's liability. I am no lawyer but it seems liability would be the amount they are responsible for and that is insurance is it not? From that one can infer that if the declared value is $300 then a missing or damaged package would be settled with the shipper to the tune of the declared value, $300.
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post #5 of 12
1/7/10 at 3:11pm
Quote:
Originally Posted by sartort View Post

From that one can infer that if the declared value is $300 then a missing or damaged package would be settled with the shipper to the tune of the declared value, $300.

My guess, would be yes. Their potential liability would be UP TO $300 in your scenario. From the sound of it, the declared value is the maximum that they can be held responsible for.

All this being said, I have found FedEx to be far better than UPS-- and have used this declared value before when shipping items. In my case, they have charged 50 cents for every $100 declared above $100.

So no, it doesn't seem like it is the same thing as insurance, however, it does raise their potential repayment cap above the $100 default, in the event that something does happen in transit.
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post #6 of 12
1/7/10 at 3:43pm
Thread Starter 
I would tend to agree. And this might be the case with Express, but based on the testimonials I have read on the webz today, FedEX Ground's max repayment is $100 despite what you may put on the declared value line. Anyone have any real world experience with this as far as claims?
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post #7 of 12
1/7/10 at 3:49pm
I have never understood why people ask these type of questions on here. You could have called them in the hour this thread has been here. Then you would know for sure. I wouldn't trust some SF member to give the proper answer if it was my money.
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post #8 of 12
1/7/10 at 4:06pm
I'll happily be corrected if I'm wrong, but I can't believe that FedEx ground will not under any circumstances pay out more than $100 for a lost or damaged shipment that is their fault. Reason I say this is that I recently bought a boutique bass guitar from a shop in NYC and they told me the only carrier they use for shipping is FedEx Ground. These guys ship instruments around the world and I just cannot believe they would use a carrier that wouldn't cover them in case of culpable loss or damage. We're talking at least $2.5K and upwards of $4K for some instruments. Maybe corporations have a different deal with FedEx Ground than retail walk-in clients? In any case, I would rather deal with them than any other courier company on earth. Hard-won experience.
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post #9 of 12
1/7/10 at 4:11pm
Thread Starter 
Quote:
Originally Posted by rebel222 View Post
I have never understood why people ask these type of questions on here. You could have called them in the hour this thread has been here. Then you would know for sure. I wouldn't trust some SF member to give the proper answer if it was my money.

Maybe because 100s of SF'ers do transactions on the B&S forum and have used FedEX as the carrier and have experience with the company from a consumer's point of view after something has gone wrong, not from a phone call where some hourly employee might just tell you what you want to hear before mailing the package out.

Of course I am not stupid enough to just blindly trust what's written on here, but I think the discussion is valid. I really don't see how it hurts to ask a question about this as it could benefit all sellers. If you don't like the thread, don't click on it, much less take the time to bitch about it.
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post #10 of 12
1/7/10 at 4:14pm
Quote:
Originally Posted by tradernick View Post
Maybe corporations have a different deal with FedEx Ground than retail walk-in clients?

They do.
They have a third party contract for shipping insurance. I have it also (much better rates than "regular" customers get)
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post #11 of 12
2/23/11 at 2:27am
I just received a check from fedex in the amount of 328.00 for the claim filed on a damaged computer, although I'm not sure if I want to cash it because although the declared value put on the paperwork was only 300.00, that was not the actual value of the system, the correct value was not known at the time of shipping, but proof of the actual value was filed with the claim, so should fedex be liable for the actual value since they packed and shipped it, or am I just lucky to get the declared value listed, the damage caused calls for a full replacement and the of course it is more than 300.00 to replace it. This info was supposed to help but I see it just raises more questions.
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post #12 of 12
2/23/11 at 2:43am
THanks for the valuable thread. Not trying to be a n00b but this thread should be moved to the general discussion section, and not in the B&S thread. Thanks
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